Pending Legislation Alert: FLSA Notices On Worker Classifications

Legislation has been passed to require employee notification of classification.

The government is all in a tizzy over the use, or in their eyes the misuse, of the independent contractor classification. As if the threat of IRS or Department of Labor penalties is not enough a new piece of legislation has been introduced in the U.S. Senate.

The Bill

The bill that has been introduced is the Payroll Fraud Prevention Act of 2013. This bill requires ALL to provide notices to ALL employees and “non-employees” to inform them as to their employment status. Even if the company does not use independent contractors they still have to provide this notice to their employees.

Here is what is required:

A notice that tells a worker how they are classified;

Provide the contact information for the U.S. Department of Labor website;

Tell the workers they should contact the USDOL if they believe that they have been misclassified or if they have any questions.

Penalties

Employers will be penalized if:

They do not provide the notice;

Do not provide the notice in a timely manner, as in the deadline that will be set.

The employer will be penalized in two manners.

First, a monetary fine of up to $1,100 per person, or $5000 per person if the violation was willful, will be levied.

Secondly, the workers in question will be assumed to be an employee and all back taxes due will be required.

Pay Attention

This bill, S.1687, was filed on November 12, 2013 by Senator Robert Casey (D-PA). With recent changes in the Senate it might stand a chance, but support in the House may be doubtful. This is one more approach to the current administration’s drive to clamp down on the use of the Independent Contractor classification. Apparently they are concerned with the number of companies threatening to use independent contractors as a way of avoiding the requirements of the Affordable Care Act.

Every employer should be well aware of both the IRS and USDOL requirements for working with independent contractors. Woe be to the company that knowingly violates these requirements today, the government is on the look out.

Omega HR Solutions, Inc. uses creative human resource solutions to provide answers to time, money and service issues with employers and their employees. Visit our Products and Services page for more information or contact us to learn how we can help your organization.

Featured Time and Attendance Sponsor

Search Our Blog Here

About Mike Haberman

I have been in human resources for over 30 years, both as a practitioner and consultant. I am known as "THE HR COMPLIANCE GUY" and as an HR Futurist. I was named an "Influencer" to IBM's New Way to Work panel.

I co-founded Omega HR Solutions in late 2000, beginning operations January 2001. I am a senior HR consultant. I am also an instructor at the University of Georgia School for Professional Education teaching human resources management. Additionally, I present numerous webinars on a monthly basis.

My blog has been published over 10 years and I write for two other sites as well, Workology (formerly Blogging4Jobs) and eSkill. I have been a certified Senior Professional in Human Resources (SPHR) for over 20 years and I have been certified as SHRM-SCP from day one.

With my background, knowledge and experience I help guide companies through compliance issues today and help them prepare for the world of work tomorrow.

Certified Web Based Training

Upcoming ComplyArena HR Webinars

Mike's HR Webinar Schedule With ComplyArena:

Please follow the links and register for your seat today while they are available.

New webinars will be posted as soon as they are scheduled. Go to ComplyArena.com to find out more.

Upcoming Compliance World HR Webinars

Mike's HR Webinar Schedule With Compliance World:

Please follow the links and register for your seat today while they are available.

New webinars will be posted as soon as they are scheduled. Go to Compliance.world to find out more.

Upcoming TrainHR Webinars

Mike's HR Webinar Schedule With TrainHR:

July 18 1 pm Preventing mistakes in age discrimination.

Please follow the links and register for your seat today while they are available.

New webinars will be posted as soon as they are scheduled. Follow the link below to review past webinars as well as to see ones in the making. Go to www.TraninHR.com. to find out more.

HR Certification Opportunities

The next certification class I will be teaching will be:

September 2017

Information available at
http://www.georgiacenter.uga.edu/
courses/human-resources/

If you are in the Atlanta area and would like to explore certification as a Human Resources Professional check out these programs at UGA.